The terms of an audit engagement in the public sector are normally mandated and therefore not subject to requests from, and agreement with management. Therefore the requirements in the ISA 210, when applied in the public sector context, are useful in establishing a common, formal understanding of the respective roles and responsibilities of management and the auditor.

Scope - Content:

The Practice Note provides additional guidance for public sector auditors related to

Preconditions for an audit

Agreement on audit engagement terms

Acceptance of a change in the terms of the audit engagement.

Appendix 1 of the Practice Note gives an example of an Audit Engagement Letter in the public sector.